Section 28/18: The Governor shall hold office for a term of 5 years from the date of the appointment and may be reappointed for not more than 1 term.

Section 28/19: In addition to the retirement from office on the expiration of the term prescribed under Section 28/18, the Governor shall vacate upon;
(1) death;
(2) resignation;
(3) possessing qualifications or restrictions contravening the provisions of Section 28/17;
(4) being removed by the Cabinet upon the recommendation of the Minister due to wrongful misconduct or dishonest performance of duties;
(5) being removed by the Cabinet upon the recommendation of the Minister or by the proposal of the Minister upon the recommendation of the BOT Board due to gross incompetence in the performance of duties or incapability, provided that explicit reason shall be specified in the order.

Section 28/20 The Governor vacating office shall not hold any position in financial institutions within 2 years from the date of vacation.

Section 28/21 For the BOT’s business concerning any third party, the Governor shall be a representative of the BOT. In this regard, the Governor may authorize an officer to undertake any particular business in accordance with the regulations prescribed by the BOT Board.

Section 29 The Governor shall have salary, position award and other benefits as prescribed by the Minister. To determine the salary, consideration shall be taken as to the prohibition of holding a position in any financial institution as specified under Section 28/20.

Chapter 5 bis Financial Institutions Development Fund
_______________

Section 29 bis In this Chapter: “Financial Institution” means

(1) a commercial bank under the law on commercial banking: (2) a finance company, a finance and securities company or a credit foncier company under the law on the under taking of finance business, securities business and credit foncier business; (3) any other institution undertaking business concerning finance as prescribed by the Minister in the Government Gazette. “Fund” means the Financial Institutions Development Fund. “Manager” means the manager of the Fund.

Section 29 ter A fund shall be established in the Bank of Thailand and called the “Financial Institutions Development Fund”. The Fund shall be a juristic person with the purpose of reconstructing and developing the financial institution system to accord its strength and stability. It shall have the “Department of Financial Institutions Development Fund” as its competent authority and shall be separated and kept wholly distinct from the Bank’s other business.

Section 29 quarter The Fund shall be composed of: (1) monies accepted under Section 29 quinque and Section 29 septem; (2) monies and properties given by donors; (3) other monies and properties devolved on the Fund; and (4) the Fund’s earnings.

Section 29 quinque Each financial institution shall, in accordance with the rules, procedures and within the period of time prescribed by the Fund Management Committee, remit to the Fund a sum of money at the rate prescribed by the Fund Management Committee, with the approval of the Cabinet. Such rate shall not be more than one half of 1 per cent of the total amount of deposits, borrowings or funds received during the year by a financial institution from the public, as the case may be, which is outstanding at the end of the preceding 6 month financial period in which the remittance is to be made.

In the case where the Fund guarantees to the creditors of the financial institutions, the Fund Management Committee shall require the financial institutions to remit to the Fund a sum of money at the rate of not more than one half of one per cent of the debt outstanding guaranteed by the Fund and hold by such financial institutions at the end of the preceding 6 month financial period. Such remittance shall be made at the same time the remittance as prescribed in paragraph one is to be made. The rate under the first paragraph may be prescribed differently according to type of financial institution. For the purpose of computation of the remittance to the Fund, deposits or borrowings received by a financial institution from the Fund shall be excluded. Where the Fund has sufficient money and property to conduct business in accordance with its purposes, the Fund Management Committee may declare that money shall cease to be remitted to the Fund.

Section 29 sex Any financial institution which fails to make the remittance to the Fund in accordance with Section 29 quinque accurately and in full shall pay in accordance with rules and procedures prescribed by the Fund Management Committee a surcharge not exceeding twice the amount of money yet to be remitted.

Section 29 septerm The Bank of Thailand shall from time to time consider allocating to the Fund any suitable amount of reserves under Section 9. The Bank of Thailand may advance to the Fund such sums as are deemed necessary, but such sums shall be repaid by the Fund within the time prescribed by the Court, which may also prescribe that the Fund shall pay remuneration in return for such advances.

Section 29 octo⁶ The Fund is empowered to conduct its business within the scope of its purposes under Section 29 ter, and such shall include the powers to:
(1) hold ownership or possessory or any real right, build, buy, acquire, sell, dispose of, hire, lease, hire-purchase, lease under hire-purchase agreement, borrow, lend, accept pledges, accept mortgages, exchange, transfer, accept transfer of or engage in any act concerning properties, within or outside the Kingdom, including to accept properties from donors;
(2) guarantee or certify, accept, give aval to or intervene to honour bills;
(3) hold deposit with financial institutions as the Fund Management Committee deems necessary and appropriate;
(4) borrow money, issue bills and bonds;
(5) make investment for the purpose of earning income as permitted by the Fund Management Committee;
(6) undertake all business in connection with or incidental to attainment of the objectives of the Fund.

Section 29 novem There shall be a committee called the “Fund Management Committee” consisting of the Governor as Chairman, the Permanent Secretary for Finance as Deputy Chairman and not less than five, but not more than nine, other committee members appointed by the Minister. The Manager shall be the Secretary of the Fund Management Committee.

Section 29 decim Committee members appointed by the Minister shall retain office for a term of 3 years. If a committee member appointed by the Minister vacates his or her office before the expiration of his or her term or if the Minister appoints an additional committee member during the term of office of existing committee members, the replacement appointee or the additional appointee shall retain office for the remaining term of the existing committee members. On the expiration of the term of office mentioned in the first paragraph, if no appointment of new committee members is yet made, the retiring committee members shall retain their offices and conduct their duties until new appointees take charge of their duties. A retiring committee member shall be eligible for reappointment, but for not more than 2 consecutive terms.

Section 29 undecim Besides retiring from office on the expiration of the term under Section 29 decim, any committee member shall vacate his or her office when he or she; (1) dies; (2) resigns; (3) is ordered to leave by the Minister; (4) is declared bankrupt; (5) is adjudged incompetent or quasi-incompetent; (6) is sentenced to imprisonment by a final judgment unless such punishment is for an offence done in negligence or for a petty offence.

Section 29 duodecim For a meeting of the Fund Management Committee, the quorum shall consist of not less than half of the members of the Committee. Decisions shall be taken by a majority of votes, each committee member having 1 vote. In the case of a tie, the Chairmen shall be entitled to cast an additional deciding vote.

Section 29 tredecim The Fund Management Committee shall have the authority and duty to lay down policies and take general control and superintendence of the affairs of the Fund. Such authorities and responsibilities shall include: (1) issuing regulations of the purpose of complying with Section 29 ter, Section 29 quinque and Section 29 octo; (2) issuing regulations concerning meetings and operations of the Fund Management Committee; (3) issuing regulations governing the performance of duties of the Manager; and (4) considering any other matters assigned by the BOT.

Section 29 quattuordecim The Chairman and members of the Fund Management Committee shall receive such remuneration as prescribed by the Minister.

Section 29 quindecim The Manager shall be appointed or removed by the Fund Management Committee. The Manager shall be appointed from an officer of the BOT.

Section 29 sedecim It shall be the Manager’s duty to administer the affairs of the Fund in accordance with the objectives and responsibilities of the Fund and in accordance with the policy or regulations prescribed by the Fund Management Committee. In administering the affairs of the Fund, the Manager shall be responsible to the Fund Management Committee.

Section 29 septendecim The Manager shall be the representative of the Fund in regard to the Fund’s external affairs and in this respect the Manager may, in accordance with the regulations prescribed by the Fund Management Committee, specifically authorize a representative or any person to act on his behalf.

Section 29 duodeviginti⁷ The monies of the Fund shall be spent only on conducting business to attain the objectives of the Fund and for the Fund’s administrative expenditures including any remuneration under this Chapter as prescribed by the Fund Management Committee.

Section 29 undeviginti The Fund shall lay down and observe a proper accounting system, maintain regular internal auditing and books of account which itemize: (1) receipts and payments; (2) assets and liabilities; showing accurately and properly its state of affairs including the origin of such items.

Section 29 viginti The Office of the Auditor-General shall be the Fund’s auditor and shall each year audit the Fund’s accounts including its finances.

Section 29 unetviginti The auditor shall present an audit report to the Minister within 90 days of the end of the financial year, a copy of which shall also be sent to the Bank of Thailand.

Next Page
[1]  [2]  [3]  [4]  [5]  [6]  [7]

6 As amended by Section 10 of the Bank of Thailand Act (No.4) B.E. 2551.

7 As amended by Section 11 of the Bank of Thailand Act (No.4) B.E. 2551.